The Table Below Shows Hypothetical Data for Volumes of E-Books

question 106

Multiple Choice

The table below shows hypothetical data for volumes of e-books and hardcover books sold over a 3-year period in a particular city.
TABLE 2-3
-Refer to Table 2-3.Suppose we choose Year 1 as the base year and construct a series of index numbers with which to analyze the sales data.The index numbers for volumes of e-books sold (starting with Year 1) is

• A)100; 44.2; 21.7.
• B)100; 226.1; 460.9.
• C)23 000; 52 000; 106 000.
• D)100; 126.1; 360.1.
• E)1; 0.442; 0.217.

---

Definitions:

Profit-Maximizing Output

The level of production at which a firm can achieve the highest possible profit, considering its cost structure and the market price.

Wage Rate

The amount of compensation offered per unit time or piece of work to an employee.

Total Product

The total quantity of output produced by a firm from a given quantity of inputs.

Labor Demand Curve

A graphical representation showing the quantity of labor that firms are willing to hire at different wage rates, assuming other factors remain constant.